Geithner: China will move on yuan without pressure

WASHINGTON (MarketWatch) -- Treasury Secretary Timothy Geithner said Tuesday that he thinks China will eventually move to end the yuan's peg to the dollar for its own reasons. "I think China will decide ultimately it is in their interest to move to a more flexible exchange rate," he said in an interview on Fox Business News. Geithner's comment suggests he believes that pressure on China from Congress is unnecessary and perhaps counterproductive. There has been a flurry of activity recently in Washington with members of Congress demanding that the White House ratchet up pressure on China by labeling the country a currency manipulator. Many U.S. manufacturers believe China's peg to the dollar gives Chinese imports an unfair price advantage. Chinese officials have reacted sharply to this criticism from Congress. Geithner said he was not concerned that a bilateral trade war is brewing.